MicroStrategy, the corporate Bitcoin leader, has introduced a new public metric to quantify its commitment to the cryptocurrency. Founder Michael Saylor announced the launch of the "BTC Rating" on the company's website, a key performance indicator designed for investors.
Chaitanya Jain, Head of Bitcoin Product Strategy, detailed the calculation:
BTC Rating = (Bitcoin Reserves - Debt - Preferred Stock + USD Reserves) / Market Capitalization
In essence, the rating reflects the ratio of the company's net Bitcoin holdings to its total market value. A higher rating indicates a greater proportion of the firm's valuation is directly backed by its Bitcoin treasury, net of liabilities and adjusted for cash reserves.
This transparent metric underscores MicroStrategy's strategy of using Bitcoin as its primary treasury reserve asset and provides a clear, standardized measure for analysts and shareholders to assess the company's Bitcoin leverage relative to its market price. $BTC $ETH $BNB
